Build Your Real Estate Power Team: You Want These Players
Associates,This week, we’re talking about the squad you need to stop fumbling your real estate dreams. You don’t need superpowers; you just need a mentor, a lender, and a contractor who shows up sober. HELPFUL LINKS
How To Build Your Power Team They say, “Rome wasn’t built in a day.” And, as anyone who's ever tried to assemble IKEA furniture knows, it definitely wasn’t built by just one guy. When I started shopping for my first deal, I quickly learned that if you want to win, you’ve got to assemble a power team. Here is the team that I started to assemble to help me buy my first rental property: 1. The MentorIf you’ve been reading these newsletters, you already know I hired a real estate coach He . It wasn’t cheap. But to put it curtly, I swiped my card because I wanted to buy his confidence. I had never purchased a property before, but when I hired him, all of a sudden I had his expertise on my side. I wasn’t just mooching an answer to a question now and then… I put my money where my dreams were and took the risk. I showed him that I meant business, but I also showed myself that I was taking this seriously and that I wasn't going to put off buying my first deal any longer. I can’t stress this enough: find a mentor. Someone who’s been in the game longer than you, who’s already made the mistakes so you don’t have to. Trust me, it’s worth every penny. 2. The LenderNext, I had my lender. His job wasn’t just to get me prequalified—it was to make me look good to the underwriters. These are the folks who hold the keys to the kingdom, deciding if you’re worthy of the loan. Lucas’s ability to explain my finances in a way that made sense to the underwriters, and convinced them to hand me nearly $100,000 was clutch. He also helped me navigate some of the more stressful parts of the process, like when I thought I wouldn’t have enough cash reserves to qualify. We were able to use cash invested in securities as “reserves.” Spoiler alert: I had exactly what I needed to buy the house. Until you step into the "Creative Finance" space of real estate, everything starts with getting pre qualified. 3. The RealtorUntil this point in my career, I had been involved in quite a few transactions. I'd sold dozens of houses and worked on the lending side of the table dozens of time... but actually being the guy to walk the properties, make real offers, send real earnest money, and sign on the dotted line for the biggest asset that most Americans EVER purchase... that was all new to me. I especially needed help regarding the purchase agreement. I hadn't signed one of those for an on-market real estate deal before, and if you have done a deal or two, you know it is a LOT of paperwork Pro tip: your realtor isn’t just there to find properties—they’re your first line of defense against making a bad investment. My STRONG recommendation for you is to find a real estate agent who is an experienced real estate investor. Everyone and their 3rd cousin's dog has a real estate license nowadays, and it takes some networking to find a trustworthy agent. 4. The Insurance GuyInsurance is like the broccoli of real estate: you don’t want to deal with it, but you know you have to. When I bought my first rental property, I learned that regular homeowners’ insurance wouldn’t cut it. I needed landlord insurance, which is a special kind of coverage that protects your property when you’re renting it out. My insurance guy walked me through the options, explained the coverage limits, and helped me find a plan that wouldn’t break the bank. Now, I sleep easier knowing my investment is protected. Especially when things went TERRIBLY wrong... I'll save that story for another day, but just know a LOT of water was involved, and insurance was needed. 5. The ContractorsThese folks are the unsung heroes of real estate. They’re the ones who turn a house with questionable carpet and peeling paint into something you can rent out for top dollar. My contractors included a master electrician, a jack of all trades, a couple of carpet guys, and my parents. (We did much of the work, but not all.) For this property, I needed upgrades—new flooring, a fresh coat of paint, some plumbing fixes, electrical panels, mini splits, drywall, cabinets... staying on schedule and Without them, it would have been nearly impossible for me to make this deal a successful investment. If you’re building your team, take the time to vet your contractors. Look at their reviews, ask for references, and—most importantly—make sure they show up when they say they will. The best way I have found contractors is by referral. Think of the title company as the referee in your real estate game. Their job is to ensure the transfer of ownership is clean and legal, free of surprises like liens or unresolved disputes. For my first deal, the title company walked me through the title search process, ensured all the paperwork was buttoned up, and even handled the final disbursement of funds. It was like having an impartial coach on the sidelines, making sure everything ran smoothly. Here’s the truth: a good title company doesn’t just handle the paperwork—they’re your peace of mind. When you’re making one of the biggest financial decisions of your life, you want to know the ground you’re standing on is solid, literally and legally. If you’re building your power team, don’t overlook this critical player. Building Your EmpireThe point of all this? Whether you’re building Rome or buying your first rental property, you can’t do it alone. You need a team. And not just any team—a great team. One that complements your strengths, compensates for your weaknesses and helps you see things you might otherwise miss. We will discuss all of this and more in issues to come. Talk soon, -Jonathan |